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Asset price bubbles: a survey
Journal article   Peer reviewed

Asset price bubbles: a survey

Anna Scherbina and Bernd Schlusche
Quantitative finance, Vol.14(4), pp.589-604
04/01/2014

Abstract

Asset bubbles Asset pricing Behavioral finance Behavioral models
Why do asset price bubbles continue to appear in various markets? What types of events give rise to bubbles and why do arbitrage forces fail to quickly burst them? Do bubbles have real economic consequences and should policy makers do more to prevent them? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral models and rational models with frictions. The latest U.S. real estate bubble is described in the context of this literature.

UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

#8 Decent Work and Economic Growth

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